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A lot was asked of and answered by Douugh in this release, but the main takeaway was that the parents of director Bert Mondello were issued a significant number of shares in breach of listing rule 10.11 before selling them for a big profit.
According to the release, corporate lawyer Steinepreis Paganin has reviewed its re-compliance register and found that Mr Mondello’s parents were issued 3.35 million Douugh shares for 3 cents per share in a re-compliance capital raising. 3,117,500 of these shares were sold in October for a profit of $200,470.
The parents received a further 422,727 shares for 22 cents per share during its recent placement, which was announced along with its deal with Humm Group Ltd (ASX: HUM) in December. The Douugh share price ended that day at 29 cents, which was 32% higher than the placement price.
These compliance breaches certainly aren’t a good look for a company that was until recently calling itself a neobank.
Douugh’s shares will remain suspended while the ASX’s enquiries continue. |
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